Key Revenue Metrics for Evaluating Your Online Marketing

Online marketing is one of the most effective ways to spread brand awareness and get more leads. Today almost every business is now considering shifting to digital marketing. This makes perfect sense since more than 90% of consumers prefer shopping online since it’s easier and more convenient. However, employing online marketing does not guarantee success.

For more efficient results, it’s imperative to hire a trusted Utah SEO agency. These professionals will put your business in the right place. When looking for prospects, make sure to check their portfolio. Do your research and read reviews about their services. Ask for referrals and find out about their experience working with them. Additionally, they should discuss their SEO campaign’s key performance indicators (KPI).

The revenue metrics, for instance, gauge your returns from the money used in marketing. Here are the most important of these metrics.

Cost of Customer Acquisition (CCA)

This evaluates the budget spent on getting new clients on your online platforms. It adds up the agency fees, your staff’s pay, software, and other related expenses to get your platform before the right clients.

You want to ensure you are not spending on customer acquisition more than a client is spending on your business. It is also an important metric when working with an advertising agency. This is because you should be sure that the fee the agency is charging for customer acquisition is less than what the clients are spending in your company.

Customer Lifetime Value (CLV)

This metric evaluates how much a client will spend in your company from the moment he/she is recruited until the time he/she leaves. If, for example, a client remains active for over three years, then this is more valuable than one who only makes one purchase and leaves. Marketing efforts to maximize your CLV numbers are aimed at getting existing clients to buy more products through up and cross-selling tactics.

Digital Funnel Metrics

The marketing cycle includes different stages that a client will go through before taking the desired action. Digital funnel metrics gauge the number of customers, leads, and visitors you get on your platforms at different stages of buying. If your top-of-the-funnel numbers are high, but you only have a low number in the bottom-of-the-funnel, this means you have a high bounce rate. It would help if you thus focused on getting to the cause of these bounce rates to get more clients to the bottom-of-the-funnel.

Value per Visit

This will evaluate how much money a client will spend on your platform each time he/she visits. If you have multiple visits per client in a specific period without him/her taking desired actions, you should re-evaluate your site’s experience. When considering the value per visit, however, you should also evaluate the content shares the client has generated since these are intangible benefits for you.

The above revenue metrics are not considered in isolation. They all affect each other, and experts interpret them in combination. This way, they can guide you on the best way to boost your marketing efforts based on the metrics.